Latest US Offshore Wind Auction Draws Few Bidders

Only two of the registered ten bidders showed up. RES America Inc. purchased a 187,523-acre parcel for $281,285, while Offshore MW LLC purchased 166,886 acres for a mere $166,886, the remaining two parcels were left without bidders. The purchase price here is a massive drop from previous auctions, which have been held within the past two years. Deepwater Wind won the first auction in 2013, where it bought 164,000 acres for $3.8 million, and in August 2014, US Wind purchased an 80,000-acre parcel for $8.7 million. So, US Wind paid more than $100 per acre, while RES America and Offshore MW paid less than $2.00. This new hesitation may be due in part to the new-found struggles of the Cape Wind project, which was set to become the first U.S. offshore wind project this year before contract struggles announced in early January . After nearly 15 years of planning, two utilities d...